Support for mortgage holders who are struggling with payments or worried about interest rates
The UK’s Mortgage Charter was introduced in June 2023. It was created by the government in collaboration with the Financial Conduct Authority (FCA) and major mortgage lenders to provide support for homeowners who are worried about high interest rates and struggling to keep up their mortgage payments.
Here are some of the additional measures that were introduced:
- If you are worried about mortgage repayments, you can contact your lender for help and guidance without any impact on your credit file.
- Customers who are up to date with payments can switch to a new mortgage deal at the end of their existing fixed rate deal without an affordability check.
- Tailored support is available for those facing difficulties, including options such as extending the term to reduce payments, switching to interest-only, or temporary payment deferrals.
- Borrowers cannot be forced to leave their homes without consent, except in exceptional circumstances, within a year of their first missed payment.
- Customers approaching the end of a fixed rate deal can lock in a new deal up to six months in advance.
- If you are on Universal Credit, you can now receive help with your mortgage interest payments after three months
If you want to discuss anything related to the Charter with a mortgage broker, feel free to reach out to Pagoda any time.
You can find out more on the government website:
Lenders who have signed up to the Mortgage Charter:
- AIB Group (UK) plc, including AIB (NI) and Allied Irish Bank (GB)
- Aldermore Bank
- Bank of Ireland UK
- Barclays
- Bath Building Society
- Buckinghamshire Building Society
- The Co-operative Bank, including Platform and Britannia
- Coventry Building Society
- Danske Bank
- Darlington Building Society
- Dudley Building Society
- Earl Shilton Building Society
- Ecology Building Society
- Family Building Society
- Furness Building Society
- Glasgow Credit Union
- Hanley Economic Building Society
- Hinckley & Rugby Building Society
- HSBC, including First Direct
- Kensington Mortgage Company
- Leeds Building Society
- Leek Building Society
- Lloyds, including Halifax and Scottish Widows
- Loughborough Building Society
- Mansfield Building Society
- Melton Mowbray Building Society
- Metro Bank
- Monmouthshire Building Society
- Nationwide Building Society
- Natwest, including RBS and Ulster Bank
- Newbury Building Society
- Newcastle Building Society, including Manchester Building Society
- Nottingham Building Society
- OSB Group plc, trading as Precise Mortgages and Kent Reliance
- Perenna
- Principality Building Society
- Progressive Building Society
- Santander
- Scottish Building Society
- Skipton Building Society
- Spring Financial Group Limited, including MPowered Mortgages
- Suffolk Building Society
- Teachers Building Society
- Tipton & Coseley Building Society
- TSB, including Whistletree
- The Vernon Building Society
- United Trust Bank Limited
- Virgin Money, including Clydesdale Bank and Yorkshire Bank
- West Bromwich Building Society
- Yorkshire Building Society
These lenders represent approximately 90% of the mortgage market.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.